SS&C in Talks to Acquire Advent for About $2.3 BillionMatthew Campbell, Alex Sherman and Jodi Xu Klein
SS&C Technologies Holdings Inc., a provider of software for the financial services industry, is seeking to acquire Advent Software Inc., according to a person with knowledge of the matter.
SS&C is interested in acquiring Advent for around $45 a share, the person said, asking not to be identified discussing private information. Advent jumped 10 percent to $41.63 today, giving it a market value of about $2.2 billion. SS&C climbed 2 percent, for a market value of about $4.7 billion.
Advent, which also produces software used by fund managers, called off a sale effort in early 2013, saying that it decided to remain independent after conducting a strategic review. The purchase would be the largest on record by SS&C, topping an $814 million acquisition of hedge-fund administrator GlobeOp Financial Services SA in 2012, data compiled by Bloomberg show.
Kelly Holman, a spokesman for SS&C, said the company doesn’t comment on acquisitions. Justin Ritchie, a spokesman for Advent, declined to comment.
Takeovers of financial-technology providers rose five percent in 2014 to $28.7 billion, according to research from investment bank Berkery Noyes & Co. Payments companies are consolidating as consumers show an increased preference for credit cards, while providers of financial software are striking deals to keep their technology fresh.
Fundtech Ltd., another provider of software for financial-services firms, is exploring a sale that would value the company at about $1 billion, people familiar with the situation said this week. The company produces software used by banks to process payments, manage cash and send messages.
Bloomberg LP, the parent of Bloomberg News, competes with SS&C and Advent in providing technology and services to fund managers.